The Future Of Customer

Experience In A

Connected World

Tom Burrell, Head of Social, CRM & Analytics

Digitas LBI

May 2014

Slide on the rate of change

• Digital technology and rate of change slide

A presentation about change

Changing

Consumer

Behavior

Taking advantage

of this change

Business

Readiness

Changing Consumer Behavior

100%UAE set to become

first country in the

world to have 100%

household broadband

penetration

UAE, Telecoms Minister,

May 1st 2014

DIGITAL IS MAINSTREAM…

9.9hrsUnder 25s in the

Middle East spend

almost 10 hours per

day online

53%of consumers state

digital is the best way

to connect with brands

which matter to them

Top 5 Smartphone Penetration

Mobile Behaviors

And they cant live

without their mobile phones

MENA CONSUMERS ARE MOBILE…

advocate

3/10

sharing brand content

Have sent a video clip,

link or image about a

product or brand 7/10

Became a 'fan‘ of a

brand, product or

company they like

purchase decisions

5/10Social Media helps me

decide what I want

before I go Shopping

50% of all social

traffic is on

mobile

Do people in UAE trust

comments people write about

brands in social?

… AND MENA CONSUMERS ARE SOCIAL

85%HAVE AT LEAST 1

SOCIAL MEDIA

ACCOUNT

61% HAVE 2+

ACCOUNTS

60% VISIT A SOCIAL

NETWORK DAILY

Avg. time spent on

Social per day: 2

hours

81%

19%

UAE POPULATIONEmirati Nationals

Expats

When we say

digital in the UAE…

We are not just referring to locals.

Expats bring digital behaviours from

their home countries

To guide brands through the « next » purchasing ecosytem,

DigitasLBi has conducted a first-of-its-kind, in-depth Global survey

of connected customer experience

NB: Study conducted online from February 2 to March 28, 2014.

Sample size: 1,000 web users per country across 15 markets, aged

18+ yrs (quota method: gender, age, income or social profile,

region).

GLOBAL RESEARCH

69.5%SMARTPHONE

39.4%TABLET

WHICH DEVICES DO PEOPLE USE?

58% DESKTOP

76% LAPTOP

QUESTION:

Personally, what do you use?

27%SMART TV

People use, on average, 2.69 connected devices.

MULTI-DEVICE BEHAVIORS

Anytime, anywhere, any device (ATAWAD)

QUESTION:

Personally, what do you use ?

QUESTION:

In the last 3 months, have you

purchased an item on……

HOW DO PEOPLE SHOP?

TABLETSMARTPHONE

DESKTOP & LAPTOP

SMART TV

Research Online, Purchase Offline

58%

of global consumers search a product online before buying in-store 88%

of people who use a smartphone to search for information on a product or service do it in a public place or on the go

of consumers think that having the option to compare and get more information about productsvia their mobile phone in the store can affect their buying decisions.

71

%

QUESTION:

You are in a store about to buy a

product but then you find, via your

mobile, that it's less expensive

elsewhere (online or in another

store). Would you be motivated to

buy the product elsewhere if…

SHOWROOMING HAS BECOME COMMON PRACTICE

1

PEER & EXPERT REVIEWS CHANGE BEHAVIOUR

of global consumers

consult their family,

friends, or acquaintances

before buying a product.

PEERS

81%CONSUMER OPINIONS

80%PRO/EXPERT

67%

of global consumers

consult consumer

opinions before buying a

product.

of global consumers

consult the

professionals, experts,

journalists, or bloggers

before buying a product.

QUESTION:

Do you read consumer reviews before buying a product

More specifically, when it comes to reviews and

recommendations, please class the following by order of

importance for you

94% people read consumer reviews before buying a product (31% do it in store)

of people think that in-store

sales advisors would be more

efficient if they had tablets

providing all available product

information.

92% in China, 87% in Singapore, 83% in

Spain, 80% in Italy, 65% in Sweden, 59% in

Germany.

74%

QUESTION:

If all in store sales advisors had tablets

providing

all available product information, do you

think

they would be more efficient?

A REAL NEED: USING DIGITAL TO IMPROVE SALES FORCE PERFORMANCE

1. MENA consumers and in particular those from the UAE are among the

most connected, with the highest smartphone penetration in the world

2. MENA consumers are very social, spending a large proportion of their days

every day on social networks

3. Globally consumers use multiple devices to engage with brands, shop and

research

4. Researching online and purchasing offline is ubiquitous

5. Showrooming has become common practice

6. 94% of consumers read consumer reviews before buying a product and

they are more heavily influenced by peers and other consumers than by

experts

7. In this digital age consumers feel salespeople should as equipped as they

are with information about the products and services they sell

KEY FINDINGS

Taking advantage of this change

Traffic Creation

Customization

Digital Distribution

Seamless Ecosystem

OMNI-CHANNEL FUTURE TRENDS

#1 – TRAFFIC CREATION TRENDS

In a few years, the impact that digital will have on a connected and geo-localized

population will be very high. We estimate that it will be the main traffic-creation

driver for commercial offers.

Trends to focus on:

• Store locator + click & collect – standardization & industrialization processes

• Geofencing mobile - undergoing testing of new technologies (manufacturers, retailers, Brands

and pure players)

• Mobile SEO with results specific to precise location – still in testing phase

Click to Collect

Geofencing: Sends push based on geographic position

Google search results made relevant to your physical location

Traffic Creation

Customization

Digital Distribution

Seamless Ecosystem

OMNI-CHANNEL FUTURE TRENDS

#2 – CUSTOMISATION TRENDS

In the next few years we envisage brands taking the opportunity to connect digital and physical spaces to bring digital customisation advantages into physical spaces driving product choice, service, and personalisation

• Digital shopping guides – tools that enable digital content access in physical space

• Immersive Digital experience – in store digital experiences that enable customised product

access

• Ibeacons – location specific content access

• Facial Recognition–supports personalisation and payment

Digital Shopping Guides triggered by QR code or Mobile Image Recognition

Automotive: Creating immersive digital experiences in store

Retail: Klepierre inspiration corridor

Beacon allows the interaction between an application and a physical place

The first solution compatible with iOS and Android

How it works

Beacon

Application

Content, promotions or messaging

Facial Recognition supports advertising and payment

NEC: Personalised

advertising

UNIQUL: Faster

payments – face

recognition for payment

WALLS: Gesture based

advertising

Traffic Creation

Customization

Digital Distribution

Seamless Ecosystem

OMNI-CHANNEL FUTURE TRENDS

#3 – DIGITAL DISTRIBUTION

The digital era will revolutionize the way we access services and make transactions.

• Tools to reduce showrooming– Google glass, wish list integration, socially connected

digital displays

• Augmented salesforce– experience personalisation based on profile, product inventory

access

• Make tasks simpler – applications that make consumers lives simpler at home, lifestyle

management, mobile payments

Connected Glass for Intermarche

Integrated and customisable wishlists across channel

Magic Mirrors and intelligent displays support the shopping experience

Clinique’s clienteling tool provides personalised skin care recommendations

BA introduce IPADs for Cabin Crew to provide personalised service

Iberia and airberlin develop smart watch boarding passes

Wärtsilä Flexicycle™ 3D

British Gas launches a smartphone application that control home temperatures

PAY EG SQUARE

Square enables consumers to check out anywhere in the store

Traffic Creation

Customization

Digital Distribution

Seamless Ecosystem

OMNI-CHANNEL FUTURE TRENDS

#4 – SEAMLESS INTERCONNECTED ECOSYSTEM

Omni-channel means developing a seamless ecosystem where everything is

interconnected and synchronized:

• Master product / data catalogue

• Master client knowledge

• Analytics integration to monitor cross-

channel performances (in-store analytics,

offline attribution to online traffic, etc.)

Wireless sensor networks enable smart cities

Exercise

1. On your table you will find an envelope, which contains one of the omni-

channel trends we have talked about today

2. Each table should contain representatives from one or more brands. Pick a

brand and then based on the trend in the envelope brainstorm an omni-

channel concept which could be used to support this brand

3. You can use the business model framework to help you brainstorm the idea

4. You have 20 minutes. Each table will be expected to present their idea

5. Prizes for the best idea

EXERCISE

Omni-channel trend no. 1

Digital shopping guides

– tools that enable digital

content access in physical

space

Omni-channel trend no. 2

Immersive Digital

experience – in store

digital experiences that

enable customised product

access

Omni-channel trend no. 3

Ibeacons – location

specific content access

Omni-channel trend no. 4

Facial Recognition–

supports personalisation

and payment

Omni-channel trend no. 5

Tools to reduce

showrooming– Google

glass, wish list integration,

socially connected digital

displays

Omni-channel trend no. 6

Augmented salesforce–

experience personalisation

based on profile, product

inventory access

Omni-channel trend no. 7

Make tasks simpler –

make consumers lives

simpler eg home apps,

lifestyle management,

mobile payments etc

Business Readiness

The Business Impact

Technology

Alongside the

customer facing

technologies, a

CRM &

eCommerce

backbone is

critical

People

Create the right

culture, redeploy

roles, create new

teams

Process

Mapping current

processes against

new to define

required business

change

! "#$%&#&'( )#*

Technology

Scoring POC

(optional ) Selection

§ Funct ional Requirements

§ Non - Funct ional Requirements

§ Priorit ise and assign w eight ing

§ 3-4 Vendors

§ High Level Crit eria

§ Indust ry Analyst s

§ LBi Experience

§ Vendor Response

§ Product Review

§ Gap Analysis

§ Define Scenarios

§ Assess Demonst rat ion

§ Gap analysis

1

2

3

4

5

Define Criteria

Vendor Shortl ist

A CHANGE IN

STRUCTURE

IS EASY.

CHANGING

HUMAN

BEHAVIOUR

IS VERY

HARD

CHANGE AFFECTS DIFFERENT PARTS OF THE COMPANY IN DIFFERENT TIMELINES IN AN

UNPREDICTABLE WAY

INDIVIDUAL

LOSS OF IDENTITY

THE WHOLE COMPANY

A NEW ORGANISATION DEPARTMENT

NEW WORKFLOWS

PROJECT

NEW PROJECT MEMBERS

TEAM

NOT RELEVANT ANY LONGER

NEW TEAMS SHAPED

DIGITASLBI OFFER

Digital drivers to generate traffic in-store

In–store digital experiences as exciting, customized, and

effective as off-line experience

Transactions & in-store services creating value

for customers

Data and personnalisation

Accessible digital retail distribution in physical

spaces

Using social to improve commercial

performances

A flexible and seamless digital

shopping ecosystem

Organisational Design

• Mobile geofencing

• Implementation click & collect

• Local SEO, SEA and local media

• Digital OOH

• Store locator

• GPS-indoor

• Wishlist cross-device

• mobile and geolocalized coupons

• Cross-channel loyalty programs

• Cross channel recommendation engine

• Product enrichment (scan, NFC)

• Ibeacon deployment

• Interactive kiosks

• Mobile payment

• Digital devices for sales force

• Digital merchandising

• E-commerce in-store through

kiosks

• Virtual stores

• Digital pop-up store

• Vending machine new generation

• Marketplaces offline and on-line

• Digital outdoor / OOH

• Social-to-store and promotional

activities

• Social shopping

• Reviews integration in-store

• Social sharing from POS

• e-commerce platform (mobile, tablet)

• 360° customer strategies

• Acquisition strategies and Omni channel

campaigns

• Digital Business Design

• Organisational change design

• Process mapping and future state

mapping

• Data strategy (collect and analyse)

• Client segmentation

• Cross-channel tracking

• Real-time personalization

• Reporting

A UNIQUE INNOVATION ECOSYSTEM

• A world class digital innovation lab

• More than 200 start-up

benchmarked

• A beacon and google glass center

of excellence

• Several POC and prototypes

delivered

REGIONAL CLIENTS

TOM BURRELL

Head of Social, CRM & Analytics

Tom.Burrell@digitaslbi.com

0529 33 33 06